|
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 |
||||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Cash | $ | 92,500 | $ | 69,000 | ||||
| Accounts receivable, net | 102,500 | 76,000 | ||||||
| Inventory | 88,800 | 124,000 | ||||||
| Prepaid expenses | 6,900 | 10,400 | ||||||
| Total current assets | 290,700 | 279,400 | ||||||
| Equipment | 149,000 | 140,000 | ||||||
| Accum. depreciation—Equipment | (39,500 | ) | (21,500 | ) | ||||
| Total assets | $ | 400,200 | $ | 397,900 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ | 50,000 | $ | 67,500 | ||||
| Wages payable | 8,500 | 20,000 | ||||||
| Income taxes payable | 5,900 | 8,800 | ||||||
| Total current liabilities | 64,400 | 96,300 | ||||||
| Notes payable (long term) | 55,000 | 85,000 | ||||||
| Total liabilities | 119,400 | 181,300 | ||||||
| Equity | ||||||||
| Common stock, $5 par value | 270,000 | 185,000 | ||||||
| Retained earnings | 10,800 | 31,600 | ||||||
| Total liabilities and equity | $ | 400,200 | $ | 397,900 | ||||
|
IKIBAN INC. Income Statement For Year Ended June 30, 2017 |
||||||
| Sales | $ | 803,000 | ||||
| Cost of goods sold | 436,000 | |||||
| Gross profit | 367,000 | |||||
| Operating expenses | ||||||
| Depreciation expense | $ | 83,600 | ||||
| Other expenses | 92,000 | |||||
| Total operating expenses | 175,600 | |||||
| 191,400 | ||||||
| Other gains (losses) | ||||||
| Gain on sale of equipment | 4,500 | |||||
| Income before taxes | 195,900 | |||||
| Income taxes expense | 46,390 | |||||
| Net income | $ | 149,510 | ||||
Additional Information
A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
The only changes affecting retained earnings are net income and cash dividends paid.
New equipment is acquired for $82,600 cash.
Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 gain.
Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
All purchases and sales of inventory are on credit.
Exercise 16-11 Part 1
Required:
(1) Prepare a statement of cash flows for the
year ended June 30, 2017, using the indirect method.
(Amounts to be deducted should be indicated with a minus
sign.)
In: Accounting
|
KORBIN COMPANY |
|||||||||
| Comparative Income Statements | |||||||||
| For Years Ended December 31, 2017, 2016, and 2015 | |||||||||
| 2017 | 2016 | 2015 | |||||||
| Sales | $ | 397,455 | $ | 304,483 | $ | 211,300 | |||
| Cost of goods sold | 239,268 | 192,738 | 135,232 | ||||||
| Gross profit | 158,187 | 111,745 | 76,068 | ||||||
| Selling expenses | 56,439 | 42,019 | 27,892 | ||||||
| Administrative expenses | 35,771 | 26,795 | 17,538 | ||||||
| Total expenses | 92,210 | 68,814 | 45,430 | ||||||
| Income before taxes | 65,977 | 42,931 | 30,638 | ||||||
| Income taxes | 12,272 | 8,801 | 6,220 | ||||||
| Net income | $ | 53,705 | $ | 34,130 | $ | 24,418 | |||
| KORBIN COMPANY | |||||||||
| Comparative Balance Sheets | |||||||||
| December 31, 2017, 2016, and 2015 | |||||||||
| 2017 | 2016 | 2015 | |||||||
| Assets | |||||||||
| Current assets | $ | 53,412 | $ | 41,789 | $ | 55,862 | |||
| Long-term investments | 0 | 1,000 | 4,480 | ||||||
| Plant assets, net | 99,195 | 105,398 | 62,431 | ||||||
| Total assets | $ | 152,607 | $ | 148,187 | $ | 122,773 | |||
| Liabilities and Equity | |||||||||
| Current liabilities | $ | 22,281 | $ | 22,080 | $ | 21,485 | |||
| Common stock | 69,000 | 69,000 | 51,000 | ||||||
| Other paid-in capital | 8,625 | 8,625 | 5,667 | ||||||
| Retained earnings | 52,701 | 48,482 | 44,621 | ||||||
| Total liabilities and equity | $ | 152,607 | $ | 148,187 | $ | 122,773 | |||
|
2. Complete the below table to calculate income statement data in common-size percents. 3. Complete the below table to calculate the balance sheet data in trend percents with 2015 as the base year. |
|||||||||
In: Accounting
|
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 |
||||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Cash | $ | 92,500 | $ | 69,000 | ||||
| Accounts receivable, net | 102,500 | 76,000 | ||||||
| Inventory | 88,800 | 124,000 | ||||||
| Prepaid expenses | 6,900 | 10,400 | ||||||
| Total current assets | 290,700 | 279,400 | ||||||
| Equipment | 149,000 | 140,000 | ||||||
| Accum. depreciation—Equipment | (39,500 | ) | (21,500 | ) | ||||
| Total assets | $ | 400,200 | $ | 397,900 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ | 50,000 | $ | 67,500 | ||||
| Wages payable | 8,500 | 20,000 | ||||||
| Income taxes payable | 5,900 | 8,800 | ||||||
| Total current liabilities | 64,400 | 96,300 | ||||||
| Notes payable (long term) | 55,000 | 85,000 | ||||||
| Total liabilities | 119,400 | 181,300 | ||||||
| Equity | ||||||||
| Common stock, $5 par value | 270,000 | 185,000 | ||||||
| Retained earnings | 10,800 | 31,600 | ||||||
| Total liabilities and equity | $ | 400,200 | $ | 397,900 | ||||
|
IKIBAN INC. Income Statement For Year Ended June 30, 2017 |
||||||
| Sales | $ | 803,000 | ||||
| Cost of goods sold | 436,000 | |||||
| Gross profit | 367,000 | |||||
| Operating expenses | ||||||
| Depreciation expense | $ | 83,600 | ||||
| Other expenses | 92,000 | |||||
| Total operating expenses | 175,600 | |||||
| 191,400 | ||||||
| Other gains (losses) | ||||||
| Gain on sale of equipment | 4,500 | |||||
| Income before taxes | 195,900 | |||||
| Income taxes expense | 46,390 | |||||
| Net income | $ | 149,510 | ||||
Additional Information
A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
The only changes affecting retained earnings are net income and cash dividends paid.
New equipment is acquired for $82,600 cash.
Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 gain.
Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
All purchases and sales of inventory are on credit.
Compute the company's cash flow on total assets ratio for its fiscal year 2017. Please give the formula as well.
In: Accounting
|
IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 |
||||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Cash | $ | 93,100 | $ | 68,000 | ||||
| Accounts receivable, net | 101,000 | 75,000 | ||||||
| Inventory | 87,800 | 122,500 | ||||||
| Prepaid expenses | 6,800 | 10,200 | ||||||
| Total current assets | 288,700 | 275,700 | ||||||
| Equipment | 148,000 | 139,000 | ||||||
| Accum. depreciation—Equipment | (39,000 | ) | (21,000 | ) | ||||
| Total assets | $ | 397,700 | $ | 393,700 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ | 49,000 | $ | 66,000 | ||||
| Wages payable | 8,400 | 19,800 | ||||||
| Income taxes payable | 5,800 | 8,600 | ||||||
| Total current liabilities | 63,200 | 94,400 | ||||||
| Notes payable (long term) | 54,000 | 84,000 | ||||||
| Total liabilities | 117,200 | 178,400 | ||||||
| Equity | ||||||||
| Common stock, $5 par value | 268,000 | 184,000 | ||||||
| Retained earnings | 12,500 | 31,300 | ||||||
| Total liabilities and equity | $ | 397,700 | $ | 393,700 | ||||
|
IKIBAN INC. Income Statement For Year Ended June 30, 2017 |
||||||
| Sales | $ | 798,000 | ||||
| Cost of goods sold | 435,000 | |||||
| Gross profit | 363,000 | |||||
| Operating expenses | ||||||
| Depreciation expense | $ | 82,600 | ||||
| Other expenses | 91,000 | |||||
| Total operating expenses | 173,600 | |||||
| 189,400 | ||||||
| Other gains (losses) | ||||||
| Gain on sale of equipment | 4,400 | |||||
| Income before taxes | 193,800 | |||||
| Income taxes expense | 46,290 | |||||
| Net income | $ | 147,510 | ||||
Additional Information
A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
The only changes affecting retained earnings are net income and cash dividends paid.
New equipment is acquired for $81,600 cash.
Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 gain.
Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
All purchases and sales of inventory are on credit.
Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
In: Accounting
|
IKIBAN INC. |
||||||||
|
2017 |
2016 |
|||||||
|
Assets |
||||||||
|
Cash |
$ |
97,900 |
$ |
60,000 |
||||
|
Accounts receivable, net |
89,000 |
67,000 |
||||||
|
Inventory |
79,800 |
110,500 |
||||||
|
Prepaid expenses |
6,000 |
8,600 |
||||||
|
Total current assets |
272,700 |
246,100 |
||||||
|
Equipment |
140,000 |
131,000 |
||||||
|
Accum. depreciation—Equipment |
(35,000 |
) |
(17,000 |
) |
||||
|
Total assets |
$ |
377,700 |
$ |
360,100 |
||||
|
Liabilities and Equity |
||||||||
|
Accounts payable |
$ |
41,000 |
$ |
54,000 |
||||
|
Wages payable |
7,600 |
18,200 |
||||||
|
Income taxes payable |
5,000 |
7,000 |
||||||
|
Total current liabilities |
53,600 |
79,200 |
||||||
|
Notes payable (long term) |
46,000 |
76,000 |
||||||
|
Total liabilities |
99,600 |
155,200 |
||||||
|
Equity |
||||||||
|
Common stock, $5 par value |
252,000 |
176,000 |
||||||
|
Retained earnings |
26,100 |
28,900 |
||||||
|
Total liabilities and equity |
$ |
377,700 |
$ |
360,100 |
||||
|
IKIBAN INC. |
||||||
|
Sales |
$ |
758,000 |
||||
|
Cost of goods sold |
427,000 |
|||||
|
Gross profit |
331,000 |
|||||
|
Operating expenses |
||||||
|
Depreciation expense |
$ |
74,600 |
||||
|
Other expenses |
83,000 |
|||||
|
Total operating expenses |
157,600 |
|||||
|
173,400 |
||||||
|
Other gains (losses) |
||||||
|
Gain on sale of equipment |
3,600 |
|||||
|
Income before taxes |
177,000 |
|||||
|
Income taxes expense |
45,490 |
|||||
|
Net income |
$ |
131,510 |
||||
Additional Information
A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
The only changes affecting retained earnings are net income and cash dividends paid.
New equipment is acquired for $73,600 cash.
Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 gain.
Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
All purchases and sales of inventory are on credit.
rev: 06_20_2017_QC_CS-91585, 12_05_2017_QC_CS-111198
Required:
(1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
In: Accounting
| Jafan Retailing, Balance Sheet Statement December 31, 2016 & December 31, 2017 | |||
| 2016 | 2017 | ||
| Cash | $ 235,000 | $ 400,000 | |
| Accounts Receivable | 367,200 | 325,000 | |
| Inventory | 450,000 | 500,200 | |
| Prepaid Expenses | 120,000 | 160,000 | |
| Long-term investment | 100,000 | 300,000 | |
| Equiptment (Net) | 1,050,000 | 1,125,000 | |
| Total Assets | $ 2,322,200 | $ 2,810,200 | |
| Accounts Payable | $ 421,000 | $ 411,000 | |
| Salary Payable | 134,000 | 180,000 | |
| Interest Payable | 110,000 | 112,000 | |
| Bonds Payable | 550,000 | 560,000 | |
| Common Shares | 650,000 | 990,000 | |
| Retained Earnings | 457,200 | 557,200 | |
| Total Equity and Liabilities | $ 2,322,200 | $ 2,810,200 | |
| Ibrahim Retailing, Income Statement for the Year Ended Dec 31, 2017 | |||
| 2017 | |||
| Sales | $ 1,450,000 | ||
| Cost of Goods Sold | 920,000 | ||
| Total Revenue | 530,000 | ||
| Salaries Expenses | 150,000 | ||
| Interest Expenses | 120,000 | ||
| Depreciation Expenses | 60,000 | ||
| Tax Expenses | 80,000 | ||
| Total Expenses | 410,000 | ||
| Net Income | $ 120,000 | ||
| In addition: | |||
| 1) Equiptment costing $85,000 was purchased and the company paid for it by issuing 5,000 shares at $10 each, and the remainder was paid in cash. | |||
| 2) The company declared and paid out cash dividends at the end of 2017. | |||
Prepare statement of Cash flow direct method
In: Accounting
Garlington Technologies Inc.'s 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
| Cash | $ 180,000 | Accounts payable | $ 360,000 | |
| Receivables | 360,000 | Notes payable | 156,000 | |
| Inventories | 720,000 | Line of credit | 0 | |
| Total current assets | $1,260,000 | Accruals | 180,000 | |
| Fixed assets | 1,440,000 | Total current liabilities | $ 696,000 | |
| Common stock | 1,800,000 | |||
| Retained earnings | 204,000 | |||
| Total assets | $2,700,000 | Total liabilities and equity | $2,700,000 |
Income Statement for December 31, 2016
| Sales | $3,600,000 |
| Operating costs | 3,279,720 |
| EBIT | $ 320,280 |
| Interest | 18,280 |
| Pre-tax earnings | $ 302,000 |
| Taxes (40%) | 120,800 |
| Net income | 181,200 |
| Dividends | $ 108,000 |
Suppose that in 2017 sales increase by 15% over 2016 sales and
that 2017 dividends will increase to $192,000. Forecast the
financial statements using the forecasted financial statement
method. Assume the firm operated at full capacity in 2016. Use an
interest rate of 13%, and assume that any new debt will be added at
the end of the year (so forecast the interest expense based on the
debt balance at the beginning of the year). Cash does not earn any
interest income. Assume that the all new-debt will be in the form
of a line of credit. Round your answers to the nearest dollar. Do
not round intermediate calculations.
| Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017 |
|||
| Sales | $ | ||
| Operating costs | $ | ||
| EBIT | $ | ||
| Interest | $ | ||
| Pre-tax earnings | $ | ||
| Taxes (40%) | $ | ||
| Net income | $ | ||
| Dividends: | $ | ||
| Addition to RE: | $ | ||
| Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017 |
|||
| Cash | $ | ||
| Receivables | $ | ||
| Inventories | $ | ||
| Total current assets | $ | ||
| Fixed assets | $ | ||
| Total assets | $ | ||
| Accounts payable | $ | ||
| Notes payable | $ | ||
| Accruals | $ | ||
| Total current liabilities | $ | ||
| Common stock | $ | ||
| Retained earnings | $ | ||
| Total liabilities and equity | $ | ||
In: Finance
Garlington Technologies Inc.'s 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
Cash $ 180,000
Accounts payable $ 360,000
Receivables 360,000
Notes payable 156,000
Inventories 720,000
Line of credit 0
Total current assets $1,260,000
Accruals 180,000
Fixed assets 1,440,000
Total current liabilities $ 696,000
Common stock 1,800,000
Retained earnings 204,000
Total assets $2,700,000
Total liabilities and equity $2,700,000
Income Statement for December 31, 2016
Sales $3,600,000
Operating costs 3,279,720
EBIT $ 320,280
Interest 18,280
Pre-tax earnings $ 302,000
Taxes (40%) 120,800
Net income 181,200
Dividends $ 108,000
Suppose that in 2017 sales increase by 15% over 2016 sales and that 2017 dividends will increase to $198,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 8%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
Garlington Technologies Inc. Pro Forma Income Statement December 31, 2017
Sales $
Operating costs $
EBIT $
Interest $
Pre-tax earnings $
Taxes (40%) $
Net income $
Dividends: $
Addition to RE: $
Garlington Technologies Inc. Pro Forma Balance Statement December 31, 2017
Cash $
Receivables $
Inventories $
Total current assets $
Fixed assets $
Total assets $
Accounts payable $
Notes payable $
Accruals $
Total current liabilities $
Common stock $
Retained earnings $
Total liabilities and equity $
In: Finance
Garlington Technologies Inc.'s 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016
| Cash | $ 180,000 | Accounts payable | $ 360,000 | |
| Receivables | 360,000 | Notes payable | 156,000 | |
| Inventories | 720,000 | Line of credit | 0 | |
| Total current assets | $1,260,000 | Accruals | 180,000 | |
| Fixed assets | 1,440,000 | Total current liabilities | $ 696,000 | |
| Common stock | 1,800,000 | |||
| Retained earnings | 204,000 | |||
| Total assets | $2,700,000 | Total liabilities and equity | $2,700,000 |
Income Statement for December 31, 2016
| Sales | $3,600,000 |
| Operating costs | 3,279,720 |
| EBIT | $ 320,280 |
| Interest | 18,280 |
| Pre-tax earnings | $ 302,000 |
| Taxes (40%) | 120,800 |
| Net income | 181,200 |
| Dividends | $ 108,000 |
Suppose that in 2017 sales increase by 5% over 2016 sales and that 2017 dividends will increase to $170,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2016. Use an interest rate of 13%, and assume that any new debt will be added at the end of the year (so forecast the interest expense based on the debt balance at the beginning of the year). Cash does not earn any interest income. Assume that the all new-debt will be in the form of a line of credit. Round your answers to the nearest dollar. Do not round intermediate calculations.
I need help to calculate--addition to RE on income statement.....i have calculated the rest of the numbers.
In: Finance
Romeo Lindo, the management accountant at Woods Household Supplies, is in the process of planning the company’s cash needs for the last quarter of 2016. Extracts from the sales and purchases budgets are as follows:
Month 2016 Cash Sales Sales On Account Purchases On Account
August $71,000 $520,000 $420,000
September $55,500 $640,000 $400,000
October $38,400 $760,000 $520,000
November $36,500 $680,000 $440,000
December $56,750 $850,000 $540,000
i) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: 50% in the month of sale 40% in the first month following the sale 10% in the second month following the sale
ii) Accounts payable are settled as follows, in accordance with the credit terms 5/30, n60: 75% in the month in which the inventory is purchased 25% in the following month
iii) In the month of November, an old motor vehicle, with net book value of $95,000, will be sold for cash to an employee at a gain of $45,000. The employee will be allowed to pay a deposit equal to 50% of the amount in November and the balance will be settled in two equal amounts in December 2016 & January 2017
instrument purchased by Woods Household Supplies with a face value of $500,000 will mature on October 20, 2016. In order to meet the financial obligations of the business, management has decided to liquidate the investment upon maturity.
On that date quarterly interest computed at a rate of 6% per annum is also expected to be collected. Discussion Question _Budgets Page 2
vi) The manager of Woods Household Supplies has negotiated with a tenant for rental of storage space to him beginning October 2016. The rental is $864,000 per annum. The first month’s rent along with one month’s safety deposit will be collected from the tenant on October 1. Thereafter, the monthly rental in expected to be received at the beginning of each month.
vii) Fixed operating expenses which accrue evenly throughout the year, are estimated to be $2,016,000 per annum, and are settled monthly. Monthly depreciation expenses of non-current assets of $56,000 are included in these costs.
viii) Other operating expenses are expected to be $168,000 per quarter and are settled monthly.
ix) Wages and salaries are expected to be $2,916,000 per annum and will be paid monthly.
x) At the recently concluded negotiations between management and the union representing the workers it was agreed that Woods Household Supplies should make retroactive payments in the amount of $1,140,000 to employees. The payment is being settled in four equal tranches. The third payment becomes due and payable in October of 2016.
xi) The cash balance on September 30, 2016 is expected to be an overdraft of $175,000. Required:
(a) Prepare a schedule of budgeted cash collections for sales on account for each of the months October to December 2016
(b) Prepare a schedule of expected cash disbursements for purchases on account for the quarter to December 31, 2016.
(c) Prepare a cash budget, with a total column, for the quarter ending December 31, 2016, showing the receipts & payments for each month.
In: Accounting